LBTT in Scotland

grumiofoundation

The Cabinet Secretary for Finance, Kate Forbes MSP, announced in her statement to Parliament on Thursday 9 July that the starting threshold for LBTT for residential property transactions will be raised from £145,000 to £250,000. The change will not come into force immediately

https://www.gov.scot/policies/taxes/land-and-buildings-transaction-tax/

Wkmg

Do not complete any purchase in Scotland if you can avoid it! Wait to see when it will be introduced. This has obviously been rushed through and they have no way to implement it yet.

83dons2

grumiofoundation said:

The Cabinet Secretary for Finance, Kate Forbes MSP, announced in her statement to Parliament on Thursday 9 July that the starting threshold for LBTT for residential property transactions will be raised from £145,000 to £250,000. The change will not come into force immediately

https://www.gov.scot/policies/taxes/land-and-buildings-transaction-tax/

Ah ok thanks for that news hot off the press! I guess if it ends March 2021 it will be coming to force quite soon. Makes a difference as to when I conclude any new purchase the date it is enforced from! I will be looking at properties under 250k so good news for me. They may have my vote back lol.

83dons2

Wkmg said:

Do not complete any purchase in Scotland if you can avoid it! Wait to see when it will be introduced. This has obviously been rushed through and they have no way to implement it yet.

Thanks yes my thoughts precislely. They have obviously realised them doing nothing off the back of the news from England is a massive voter loser - I reckon the chance wont be far off if the deadline for it ending in31 March next year!

ProDave

I can't understand how this discount works for more expensive properties?  e.g if you buy a property for £300K how much would you now pay?

davidmcn

ProDave said:

I can't understand how this discount works for more expensive properties?  e.g if you buy a property for £300K how much would you now pay?

Works in the same way as before but the rate is now 0% for the amount between £145-£250k - so for £300k you'd pay £2500 (i.e. 5% on the £50k above £250k).

Steve_KCS

Example on a £425,000 house:
Scotland pre-lbtt reduction - £15,850
Scotland post-lbtt reduction - £13,750
England pre-stamp duty reduction £11,250
England post-stamp duty reduction - £0
England is £2,500 cheaper even before the reduction and will the Scottish reduction

Crashy_Time

davidmcn said:

Wkmg said:

Was just looking at their tax. It's already huge compared to England (at my end of the market anyway. Even without the English tax cut I'd be paying about twice as much in Scotland.

Bear in mind the difference in average property prices though between Scotland and SE England at least - if you're spending say £500k in Scotland you're beyond "normal" territory and into "member of the 1%".

Obviously you are joking?

Crashy_Time

Wkmg said:

davidmcn said:

Wkmg said:

Was just looking at their tax. It's already huge compared to England (at my end of the market anyway. Even without the English tax cut I'd be paying about twice as much in Scotland.

Bear in mind the difference in average property prices though between Scotland and SE England at least - if you're spending say £500k in Scotland you're beyond "normal" territory and into "member of the 1%".

You say that but I used to live in Edinburgh (18 months ago)  and it's quite easy to spend £1,000,000 there if you want to live in a popular part of town like Stockbridge. I know it's not London prices but it is comparable to some Southern English cities. I also used to live in Aberdeen during oil (about 6 years ago) and prices then were insanely high. I was renting at the time and moved from Brighton to Aberdeen. Flats were similar prices. Not sure about now.

Wkmg said:

davidmcn said:

Wkmg said:

Was just looking at their tax. It's already huge compared to England (at my end of the market anyway. Even without the English tax cut I'd be paying about twice as much in Scotland.

Bear in mind the difference in average property prices though between Scotland and SE England at least - if you're spending say £500k in Scotland you're beyond "normal" territory and into "member of the 1%".

You say that but I used to live in Edinburgh (18 months ago)  and it's quite easy to spend £1,000,000 there if you want to live in a popular part of town like Stockbridge. I know it's not London prices but it is comparable to some Southern English cities. I also used to live in Aberdeen during oil (about 6 years ago) and prices then were insanely high. I was renting at the time and moved from Brighton to Aberdeen. Flats were similar prices. Not sure about now.

You could get an overpriced one bed in Stockbridge for 200k if you really need to be in that area, but like all "top" postcodes Stockbridge and Comely Bank are massively overrated, it is just basically tenement flats with the odd expensive house scattered about.

SDLT_Geek

For the Scottish LBTT holiday which is proposed,but to take effect on a future date, see here: https://www.gov.scot/policies/taxes/land-and-buildings-transaction-tax/  It is to raise the threshold to £250,000.